The COVID-19 pandemic has left a deep scar on economies worldwide. And it is not yet over. The US Labor Department announced that another 3.2 million Americans filed for unemployment benefits.
The stock markets are struggling even to maintain a 100 point gain on the index. At a time like this, the cryptocurrency markets are soaring. BTCUSD recently crossed $10,000. ETHUSD is above $212. The other majors, such as XRPUSD, LTCUSD, are all above their recent highs.
ETHUSD might see a correction soon
The day’s range for Ethereum is $207.21 — $217.08. The significant rise is undoubtedly fueled by the BTC reward halving that will take place on May 12, which has spiked investor interest to an all-time high.
Let us take a look at the ETHUSD daily chart. Source: TradingView.com
The MACD line seems to be crossing below the signal line soon. That is a bearish signal. However, with the current steady uptrend on display, that seems less likely.
But, if we think a bit more rationally, ETHUSD’s rise is just following the trend in Bitcoin. And BTC has no commercial usage, as of now.
Macroeconomic factors might turn the tables for ETHUSD
US President, Donald Trump said that he is having a hard time having trade discussions with the Chinese government. It is bound to put a significant amount of strain on the economy of both countries.
Investors investing in ETHUSD are pouring in huge numbers solely on the anticipation of massive returns within a short period. For some investors, this could be absolutely fine. However, for an average retail investor, this could be disastrous in case things turn ugly, and BTC and ETH start dropping post the halving.
Therefore, for now, it might be wise to sit on the fence and not get neck-deep into these tumultuous waters of BTC halving anticipation.
